Natural Gas Forecast February 17, 2012, Technical Analysis

The natural gas markets bounced on Thursday as the $2.40 level continues to hold as support. The market has be overly bearish, but the last several sessions have suggested that perhaps some big accounts are starting to take a shot on the future of the market. The area could be the start of a bounce, but the $2.60 level has been very resistive at the same time. In the mean time, we need to see which level gives way first in order to place our trade. A break to the upside has us looking for weakness at the $3 level, and a break of the $2.40 level has us selling as well. We do not buy natural gas.